According to unconfirmed sources, Tahoe Resources has learned that the Guatemalan Constitutional Court issued a decision yesterday to uphold the lower court’s preliminary ruling to suspend its mining license at Tahoe’s Escobal Mine. This new ruling caused Tahoe’s shares to sell off more than 20% during trading today.
I first wrote about the trouble at Tahoe Resources Escobal Mine in my article, WORLD’S 2ND LARGEST SILVER MINE SHUT DOWN: Implications For Company & Market:
First, after the Guatemalan Supreme Court suspended operations at Escobal, Tahoe’s stock price took a real beating falling 33% that day. In the past week, Tahoe’s stock price decline 40%:
A lot of investors were caught by surprise as Tahoe Resources has been making a lot of money from its mines, especially from its Escobal Silver Mine in Guatemala. For example, in 2016 Tahoe Resources reported profits of $118 million on revenue of $784 million. That is a stunning 15% margin of profit… and the majority of that profit was from the Escobal Mine.
This post was published at SRSrocco Report on AUGUST 25, 2017.